Mr. Murray Nye reports

DEMESNE RESOURCES ANNOUNCES DEFINITIVE OPTION AGREEMENT TO ACQUIRE IMA MINE TUNGSTEN PROJECT IN IDAHO, U.S.

Further to its news release of Oct. 24, 2024, Demesne Resources Ltd. has entered into an option agreement dated Nov. 5, 2024, with IMA-1 LLC (the optionor), pursuant to which the optionor has granted to the company the option to acquire from the optionor a 100-per-cent undivided interest (subject to a 2-per-cent royalty) in the IMA mine project located in eastern-central Idaho, United States.

The IMA mine is a past-producing underground tungsten mine situated on 22 patented claims located in eastern-central, Idaho. Between 1945 and 1957, the property produced approximately 199,449 metric tungsten units of WO3 (tungsten trioxide) and was subsequently explored for molybdenum by various operators between 1960 to 2008.

"The IMA property offers tremendous opportunity for the near-term development of North America's only producing tungsten operation, a strategic and critical mineral and the exploration potential for significant porphyry-style molybdenum mineralization on the property," said Murray Nye, president and chief executive officer of Demesne. "Extensive historical records, prior drilling programs, 1980s underground rehabilitation work and the project's location on patented claims in mining-friendly Idaho should allow accelerated advancement of the project and a low-cost production scenario."

Pursuant to the terms and conditions of the option agreement and in order to acquire a 100-per-cent interest in and to the property (subject to a 2-per-cent royalty), the company must pay to the optionor an aggregate of $5.8-million (U.S.) as follows:

1. $100,000 (U.S.) on the effective date;
2. $50,000 (U.S.) on the six-month anniversary of the effective date;
3. $100,000 (U.S.) on the one-year anniversary of the effective date;
4. $130,000 (U.S.) on the two-year anniversary of the effective date;
5. $150,000 (U.S.) on the three-year anniversary of the effective date;
6. $250,000 (U.S.) on the four-year anniversary of the effective date;
7. $250,000 (U.S.) on the five-year anniversary of the effective date;
8. $770,000 (U.S.) on the six-year anniversary of the effective date;
9. $1-million (U.S.) on the seven-year anniversary of the effective date;
10. $3-million (U.S.) on the eight-year anniversary of the effective date. If and when the option has been exercised, a 100-per-cent undivided right, title and interest to the property will thereupon vest in the company free and clear of all encumbrances, subject only to the 2-per-cent royalty. Demesne will have the right to reduce the royalty to a 1-per-cent royalty by paying the optionor $2-million (U.S.) on or before the four-year anniversary of the effective date.

About the IMA property

The IMA property is located in the Lemhi Range, near the community of Patterson, Idaho, located approximately 20 miles east of Challis, comprising the IMA mine, with 22 patented claims on 395.98 acres and an additional 214.4 acres of patented ground in adjacent Pahsimeroi Valley. The patented claims are accessible over existing roads managed by the Bureau of Land Management.

The IMA property is a past-producing tungsten property that began as a silver mine in the 1800s. Between 1945 and 1957, while operated by the Bradley Mining Company, the IMA mine produced approximately 2,198 tons of WO3 (199,449 MTUs), from 468,000 tonnes of ore with an average recovered grade of 0.434 per cent WO3 and produced an additional sulphide concentrate yielding 1.29 million ounces silver, 1.8 million pounds copper, 2.92 million pounds lead and 20,000 pounds zinc. The IMA mine shut down in 1958 upon collapse of the U.S. government tungsten buying program.

The property was subsequently explored for molybdenum by Amax Inc. (1960 to 1962), Inspiration Development Company (1979 to 1982), Gentor Resources Ltd. (2007 to 2008) and other junior exploration companies. Inspiration ultimately focused on exploration and development of the quartz-tungsten-vein system, rehabilitating upper levels of the mine to complete underground resource delineation drilling, conducting metallurgical work and commencing construction of a haulage adit. Due to a decrease in tungsten prices, development work ceased in 1982 prior to recommencement of mining.

Tungsten mineralization in the IMA mine occurs in quartz veins hosted in Precambrian siliciclastic metasediments containing pyrite, fluorite, hubnerite, scheelite, tetrahedrite, galena, sphalerite and chalcopyrite. The quartz veins occur in a zone up to 900 feet wide, 2,000 feet long and up to 700 feet in vertical extent. Molybdenite mineralization occurs in the veins and disseminations in potassically altered Cenozoic porphyry intrusive that is exposed in the lower levels of the IMA mine and intersected in deeper historical drilling. Mineralization occurrence is interpreted as consistent with a subclimax-type porphyry model with higher-level tungsten/base metal veins.

The IMA mine is situated close to key infrastructure items and resources, including paved county roads, Tier 1 low-cost power supply, access to water rights and a mining-oriented labour force.

About Demesne Resources Ltd.

Demesne Resources is a British Columbia based company involved in the acquisition and exploration of magnetite mineral properties. The company's principal property is the Star project, consisting of five contiguous mineral titles covering an area of approximately 4,615.75 hectares located in the Skeena mining division in British Columbia, Canada. The company has entered into an option agreement, pursuant to which it is entitled to earn an undivided 100-per-cent interest in the Star project.

We seek Safe Harbor.